Pound Hits N1,837 as Nigerians Continue to Drive Demand

The British pound has continued to trade strongly against the naira, reaching N1,837/£1 at the start of trading on Thursday. This reflects sustained demand for the UK currency from Nigerians sourcing pounds for tuition payments, medical tourism, and other overseas obligations.

Foreign exchange dealers noted that the appetite for the pound remains elevated, exerting pressure on the naira despite measures by the Central Bank of Nigeria to stabilise the foreign exchange market. The sustained demand has kept the exchange rate above N1,840/£1, with analysts expecting it to retest the month's peak of around N1,850/£1 if demand persists.

The pound's strength is also underpinned by Nigeria's structural foreign exchange requirements, including imports, external debt servicing, and international trade settlements. However, stronger foreign exchange inflows, buoyed by improved crude oil receipts and higher external reserves, have helped cushion the pressure on the naira.